In this kind of a strategy, the smaller funds/ individuals try to replicate a relatively fewer number of issues as used in pure bond indexing, without acquiring each issue in the index. Yet, they construct a portfolio by matching primary risk factors without acquiring each issue in the index. However, in such cases, once the […]
Most money managers primarily focus security selection (diversification) as the only source for adding value to their investments. However, recent turmoil in the market and it’s impact on wealth as shown that this over-dependence on diversification may not be enough. Apart from diversification there is another important factor, i.e., risk management, which must be focused […]
It is a passive strategy, which tries to follows the weight age of index on a day to day basis. It is usually taken up with the idea of not underperforming the index, without actively handling the same aggressively. This is a follow-up strategy, with the least risk of underperforming the index. A pure bond […]
There are various kinds of bonds strategies which a person could adopt to get returns out of the bonds he would like to hold in the portfolio. These include: Pure Bond Indexing Strategy Enhanced Indexing by Matching Primary Risk Factors Enhanced Indexing by Small Risk Factors Mismatching Active management by Large Risk Factor Mismatches Full-blown […]
There are three basic types of bond funds: U.S. government bond funds, municipal bond funds, and corporate bond funds, in each of which, the returns could vary. US Bond Funds U.S. government bond funds invest in debt securities that are issued by the United States government and its agencies/ states. These funds are regarded as […]
Bond mutual funds are such funds which specialize in investing in bonds and other debt securities. These are conservative investments looking to check the invested amount while paying out a regular income, which may be lower than that accruing to investors than that on equity funds. But they take lower degree of risk in search […]
Learn about how warrants are valued, why invest in warrants, and the risk and reward profile of warrants.
Warrants and call warrants are subdivided into two classes based on their style to exercise such a right for conversion to equity shares. – either American or European.
Warrants are a good alternative investment vehicle for investors. Investors can make it a part of their investment portfolio to allow the leverage of having diversity in their portfolio.
Choosing between equity and debt is one of the most common decision made by business managers while raising capital. These are the two main sources of capital for any business. Equity is the form of capital raised from investors in change for a share in ownership of the business. Equity refers to a stock or […]